Blockchain and IoT Development

7 MINS READ

Blockchain technology is the change that is happening today that is going to revolutionize tomorrow. It isn’t easy to make a big change happen that’s blockchain combines various industrial aspects of technology in it. Not until recently did blockchain start integrated IoT solutions (Internet of Things). With blockchain and IoT solutions, blockchain technology has broadened its possibilities and the eras that it can reach today. Not only that, but it has also solved the issues within the IoT system, making it comparably better than it was. That is how blockchain IoT solutions became highly demanded by major enterprises in the world. As it typically happens, the demand gave rise to the need for blockchain IoT development companies. But before dwelling on that specter, let’s cover some of the basics.

What Is IoT?

Internet of Things or IoT is a system in which all connected devices, computers, smartphones, or any smart device that can store and share information have Unique Identifiers. IoT system enables sharing of data without human-to-human or human-to-computer interaction inside of network system.

 

How Do IoT Devices Work?

Pretty much anything that you have in your house that is somehow connected to the internet can be viewed IoT device. IoT devices are primarily connected to the internet and have IoT sensors and mini-computer-like processors that help them take actions based on the data they have captured with sensors via machine learning. Basically, IoT devices are mini-computers themselves simply connected to the internet.

IoT system benefits a lot from machine learning, making the connected devices into smart devices. Machine learning enables devices to learn on their own without the need to be preprogrammed based on the previously collected and stored data. An example of such an IoT smart device can be the cooling system installed in your home controlled by your phone. The temperature sensors in your cooling system may sense the rise of the temperature and automatically lower the temperature to the ones that you prefer.

Like any device connected to the internet, IoT devices lack an additional ledger for secure data storage and can be exposed to hucks and malware. This is where the combination of IoT and blockchain technology takes place.

 

Why Should IoT Be Integrated With Blockchain?

Both IoT solutions and Blockchain technology add the things that are lacking within the two systems. Security concern is the major issue for IoT-enabled devices. IoT applications and devices are typically exposed to Distributed Denial of Service( DDoS) attacks. During the DDoS attacks, compromised computers bombarded the main system at the same time with numerous data access requests, which prevented the central server from granting access to the already connected devices. IoT platforms with a weak security system are an easy target for DDoS attacks raising the level of security concerns for the potential users, eventually making them drop the idea of using IoT applications.

The weak security system isn’t the only issue of IoT. Another issue connected to IoT is the IoT network’s scalability. The number of devices connected to IoT platforms constantly grows; hence it is questionable whether the nodes in the IoT system are able to handle such a great portion. Hence making it necessary for the system to have additional support to back up the great portion of data exchange and prevent the network from crashing. Viewing all the issues, it becomes obvious that solutions provided by blockchain technology are what is needed to solve the issues within IoT.

A Blockchain network is built upon a distributed ledger that is shared only between the users and members of the blockchain community. Any data shared between the two users during transactions or any other executed action is recorded and kept securely in the ledgers and cannot be removed or retrieved in any way. Certain users and members of the community have the advantage of making a copy of the ledger and validating any new transaction inside the ledger and only then allowing them to take place. To have a clear understanding of the process, we have broken it down into simple steps.

How Do Blockchain Solutions Solve IoT Issues?

An additional level of Data privacy

The distributed ledger is a blockchain network that works based on Proof of Stake and Proof of Work security systems controlling access to the data captured in the supply chain network. Meaning that anyone who wants to connect to the network has the pass validation by the already blockchain-connected users and gets access from them.

Implementing Smart Contracts to Run Transactions

The whole idea of IoT is to get data and act according to the captured data in the shortest amount of time possible. That’s why smart contracts can stand behind the logic of blockchain IoT application development since smart contracts run on a set of primarily coded preconditions and as soon as their met transactions are executed. Smart Contracts can make the transactions and interactions in the IoT platforms ten times faster and deal with a huge amount of data without any malware.

Decentralizing IoT platforms

IoT system is a part of a centralized infrastructure, meaning it is easy to figure out the main source of information and make it a target for hucking. The supply chain is disturbed among the users, thus protecting the network from intervention.

Benefits of Blockchain IoT

Blockchain technology and IoT solutions are both the greatest technologies for today. Hence combined together, they leverage each other. Hence quickly running through the benefits of blockchain IoT application development would not heart anyone.

Quick Data Change

Accelerated data exchange is one of the key advantages of combining IoT and Blockchain technology. Currently, blockchain tech can only be allowed one transaction per second speed. A permission-based blockchain provides a more enterprise-like approach that makes it easy to handle a large amount of data and improves the communication between the huge number of IoT devices. Blockchain technology can take care of the validation process by creating trusted nodes and reducing the amount of time spent on the approval process, which comes as a result of faster data exchange in IoT.

Reduced amount cost

Blockchain IoT application development is a cost-efficient solution for any enterprise. Sharing information in a blockchain network system is done on a peer-to-peer basis and eliminates the need for a centralized control system. The opportunity to chance to create a decentralized supply chain lowers the additional business expenses and accelerates the speed of business development, reducing the points of failure.

Enhanced Supply Chain Efficiency

When combined together, blockchain technology and IoT eliminate the middle man, which is a big benefit for businesses and enterprises, thus improving the supply chain efficiency. This also leads to reducing the time and cost of the transaction fees.

Use of Blockchain IoT in Industries

Implementation of blockchain IoT has opened a whole new industry of blockchain IoT application development. Blockchain and IoT solutions have been integrated into industries such as Financial Services, Banking, Agriculture, and the Automotive industry. IoT and Blockchain have also been used in the supply chain, smart home solutions, smart contracts, home security systems, parking sensor companies, and the logistics industry.

Conclusion

Blockchain and IoT solutions are just entering the major technology industry, but it promises to earn considerable revenue. Blockchain is going to bring a new level and standard of security standards, elevating the applications. Join the future with Exio.Tech and be a part of the technological revolution.